Remove the existing siding from your home, attach 2-inch-thick rigid foam insulation sheets to the exterior of your home by screwing them to the wall sheathing with 3-inch-long screws, then cover the sheets with new siding. This method not only adds substantial R-value to your home, it also allows the sheets to cover over the draft-causing joint that exists between the first and second story in most two story homes. A home's R-value indicates its ability to resist heat flow.
Fill the walls in older homes by drilling holes in the wall and filling cavities between studs with blown-in cellulose insulation. Many older homes have no insulation at all in the wall cavities, and this technique can reduce the amount of warm air that is passing out through your walls.
Increase the level of insulation in your attic either by blowing in more cellulose insulation on top of what's there or by laying batts of fiberglass or mineral wool insulation over the tops of the the ceiling joists.